Import Duty Exemptions Cost Nigeria N34 Trillion in 2025, Customs Chief Reveals

The Nigeria Customs Service (NCS) has reported a staggering N34 trillion in approved Import Duty Exemption Certificates (IDECs) for 2025, a figure that significantly impacts the nation’s revenue generation. Comptroller-General Bashir Adewale Adeniyi disclosed this substantial figure during an investigative session with the Senate Committee on Finance, highlighting the considerable fiscal implications of these exemptions.

While acknowledging the NCS as a high-performing revenue agency, Adeniyi explained that various government policies, particularly import duty waivers, have historically constrained its revenue potential. The IDEC scheme, implemented in March 2020, has been identified as a primary driver of this revenue reduction. Approximately 60% of the N34 trillion in IDEC approvals for 2025 was attributed to military hardware procurements, granted exemptions due to Nigeria’s ongoing security challenges.

Beyond defence, other government-sanctioned duty waivers encompass the importation of compressed natural gas (CNG), electric and hybrid vehicles, essential healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, and food import intervention programmes. Adeniyi, however, cautioned against evaluating fiscal policies solely on revenue generation, stressing that many exemptions are strategically designed to achieve broader economic and social objectives. He recommended strengthening monitoring mechanisms to ensure beneficiaries of these waivers fulfil their intended outcomes, such as stabilising consumer prices, boosting industrial output, and enhancing healthcare access.

Providing an update on the NCS’s revenue performance, Adeniyi stated that N4.5 trillion had been generated as of June 30, 2026, against an annual target of N11.04 trillion. This leaves approximately N7 trillion to be realised before the fiscal year concludes.

In parallel proceedings, the Senate Committee on Finance expressed its intent to exercise its powers against agencies that failed to honour invitations to the hearing. These include the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and Federal Medical Centre (FMC), Jabi.

The committee also addressed allegations from the Fiscal Responsibility Commission (FRC) concerning an outstanding N8.9 billion in unremitted operating surplus owed by the NCS to the Consolidated Revenue Fund since 2019. The NCS strongly disputed this claim. A similar issue arose regarding the Corporate Affairs Commission (CAC), alleged to owe N13.9 billion in unremitted operating surplus between 2023 and 2025. The CAC’s Registrar-General indicated that the commission is progressively settling these obligations. Senate Committee Chairman Senator Sani Musa directed the CAC, FRC, and the committee secretariat to reconcile their records and submit a detailed report within two weeks. He issued a stern warning to the absent agencies, mandating their attendance at the next sitting or facing sanctions.

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